All, I have developed a excel spreadsheet that I hope others will find useful. It takes the following variables:
yearly expenses 46000 (amount spent, the spreadsheet adjusts for taxes)
starting amount 600000 (total of IRAs and Savings)
interest rate 0.05 (user determined, I'm conservative)
SS monthly 1677 (Social Security in today's dollars)
inflation rate 0.035 (Projected inflation rate, i.e. my guess)
Age 49
The spreadsheet calculates how long before your initial assets will run out. The variables are robust i.e. can change the yearly expenses, starting amounts, or what you think would be appropriate for inflation and rate of interest you project you will earn. Also, the spreadsheet has included space for a reverse mortgage when you reach age 62.
the first two lines look like this: Social yearly
Starting Interest Projected Social Sec Adj Expenses
Age Amt Earned Expenses Pension Security for inflation Adj for inf
49 600,000.00 30,000.00 46,000.00 0.00 0.00 20,124.00 46,000.00
50 689,000.00 34,450.00 47,610.00 0.00 0.00 20,828.34 47,610.00
http://www.zoopla.net/viewFile.php?fid=2627
Hope some find this useful,
aloha,
Terry
yearly expenses 46000 (amount spent, the spreadsheet adjusts for taxes)
starting amount 600000 (total of IRAs and Savings)
interest rate 0.05 (user determined, I'm conservative)
SS monthly 1677 (Social Security in today's dollars)
inflation rate 0.035 (Projected inflation rate, i.e. my guess)
Age 49
The spreadsheet calculates how long before your initial assets will run out. The variables are robust i.e. can change the yearly expenses, starting amounts, or what you think would be appropriate for inflation and rate of interest you project you will earn. Also, the spreadsheet has included space for a reverse mortgage when you reach age 62.
the first two lines look like this: Social yearly
Starting Interest Projected Social Sec Adj Expenses
Age Amt Earned Expenses Pension Security for inflation Adj for inf
49 600,000.00 30,000.00 46,000.00 0.00 0.00 20,124.00 46,000.00
50 689,000.00 34,450.00 47,610.00 0.00 0.00 20,828.34 47,610.00
http://www.zoopla.net/viewFile.php?fid=2627
Hope some find this useful,
aloha,
Terry